New off-the-plan laws now in force
Publish date:
New requirements for off-the-plan contracts are now in force under changes to the Conveyancing Act 1919 and Conveyancing (Sale of Land) Regulation 2017 which commenced on 1 December 2019.
The changes follow an extensive review conducted by the Office of the Registrar General and bring greater transparency and certainty for purchasers who buy residential property off-the-plan.
Key changes include:
- Vendors must give buyers key information about the development, including copies of the proposed plan, proposed by-laws and a schedule of finishes before contracts are signed
- Requiring vendors to notify purchasers of material changes to what was disclosed
- Allowing buyers to end the contract or claim compensation in some cases if they are materially impacted by changes made from what was disclosed
- Vendors providing a copy of the final plan at least 21 days before the buyer can be compelled to settle
- Widening existing legislation to clarify that the Supreme Court can award damages where the vendor terminates under a sunset clause and
- Extending the cooling off period to 10 business days with any deposit to be held in a controlled account until settlement.
For more detailed information including new approved forms, please see our Off-the-plan page or our earlier announcement “New requirements for off-the-plan contracts from 1 December 2019”